Nowadays, instead of paying with cash, check, or credit cards, consumer can use a mobile phone to pay for a wide range of services and digital or hard goods. You only need a mobile phone number or some mobile applications and the charges will be added to your mobile phone bill.

1. What is mobile payment?

Mobile payment is a kind of payment platform that turns any phone becoming a mobile wallet. It refers to payment services operated under financial regulation and performed from or via a mobile device.

Instead of using credit cards to pay directly with cash or check, Mobile payment enhances consumers to use their mobile phone to pay for any product or services.

2. Type of mobile payment

3. So…what makes Mobile Payment a useful technology?

Timeliness

With payment information stored in secure applications tied directly to a service provider, “last minute” payments make it to the account on time, avoiding late fees and penalties. Many applications linked to services have built-in reminders that alert users of approaching due dates. With just a few taps, the bill is paid — on time — from any location.

Savings

In an effort to cut down on the expense of mailing a physical bill, many companies now offer incentives to customers who will go “paperless” and tend to their account online, either at a desktop or on a mobile device.

Usage and account monitoring

While not applicable to all bills, customers who use mobile apps for payment can track data usage more effectively on their plans to avoid overages. Account maintenance options include things like password changes, addition and subtraction of services, and instant access to support functions and statement checks.

Money management

Apps from banks, credit card companies, and payment entities like PayPal make it possible to manage your money more quickly, and to check if a bill has been paid without waiting.

Security

Throwing away paper bills and receipts is an open invitation to identify theft. Using personal information and account numbers from those statements, clever thieves can wreck your life and credit for years.

To conclude, mobile payment now is considered as a hot trend in applying mobile technology into business. By enabling customers to pay by phone which is easier and more convenient, it also helps enterprise improve sales and customer loyalty.